Anchor Bancorp 3Q Profit Plunges 67%

Anchor Bancorp

reported net income of $101 thousand or $0.04 a share for the third quarter, down 67% from $305 thousand of $0.12 a share in the year-ago quarter. The company's total interested income also plunged 65.2% to $4.42 million from $12.69 million in the previous year quarter. Its President and CEO, Jerald Shaw, said that "Our continued growth in loans reflects the strength in our markets. This quarter our loans grew $15.0 million or 4.8%; with year to date growth of $43.1 million or 15.2%. Our increased loan production continues to have a positive impact by increasing our interest and fee income." He said further that "Our net interest margin continues to be strong at 4.10% as we reduce our overall cost of funds. Our compensation expenses are elevated again this quarter by $496,000 of stock-based compensation expense related to our stock incentive plan adopted in the second quarter of fiscal 2016. This expense is down from our prior quarter and is expected to continue to decrease." Anchor Bancorp said that its deposits grew $3.3 million or 1.1% to $303.2 million from $299.8 million at June 30 last year and increased $426,000 or 0.1% from $302.7 million at December last year. Its net interest margin remained strong at 4.10%, up from 4.07% in the comparable period. On Monday, the stock traded flat at $24.37.